Loan Amendment

LONDON--()--

China Nonferrous Gold Limited

(“CNG” or the “Company”)

LOAN AMENDMENT

China Nonferrous Gold Limited 中国有色黄金有限公司 (AIM: CNG), the mineral exploration and mining company currently mining the Pakrut gold project in the Republic of Tajikistan, announces that it has today entered in to an amendment agreement with China Nonferrous Metals Int’l Mining Co., Ltd. (“CNMIM”) the Company’s 38.36% shareholder, in relation to the secured loan facility signed with CNMIM in May 2012 (the “2012 CNMIM Facility”).

As announced on 1 July 2016, the Company secured a $100 million facility with China Construction Bank Corporation Macau Branch which was used to repay $69.5 million of the $81.2 million drawn under the 2012 CNMIM Facility and for working capital purposes. The balance of the 2012 CNMIM Facility, being $11.7 million, was retained to add further financial flexibility.

Due the impact of the recent avalanches, as previously announced, production at the Company’s mine is currently suspended and therefore CNG is unable to repay the amounts outstanding under the 2012 CNMIM Facility from cash flows. As a result, the Company has entered into an amendment agreement with CNMIM to extend the term of the 2012 CNMIM Facility loan by 5 years to 31 May 2022. All other terms including the pledge remain unchanged and as set out in the announcement of 25 May 2012.

Production at the Pakrut gold mine is not expected to return to normal levels until the fourth quarter of 2017, as a result the Company is also in discussions with CNMC International Capitals Company Limited, an associate of CNMIM, regarding its loan facility of USD$120 million (under which $120million was drawn as at 30 April 2017) and is repayable on 31 December 2018. The Company’s facility with China Construction Bank Corporation Macau Branch under which $100 million was drawn as at 30 April 2017, is repayable 60 months from first draw down which occurred on 30 June 2016. The Company is monitoring its financial position in light of the avalanche and lack of production and will continue to update shareholders in due course. As at 30 April 2017 the Company retained $8.8 million of cash on the balance sheet.

As CNMIM is a substantial shareholder in the Company pursuant to AIM Rule 13, the amendment of the terms of the 2012 CNMIM Facility is deemed to be a related party transaction. The Company’s board of directors (excluding Wu Xiang and Weili (David) Tang, who are appointees of CNMIM) considers, having consulted with CNG’s Nominated Adviser, Investec Bank plc, that the amendment of the terms of the 2012 CNMIM Loan are fair and reasonable insofar as the shareholders of CNG are concerned.

For further information please visit the Company’s website (www.cnfgold.com) or contact:

China Nonferrous Gold Limited

David Tang, Managing Director

Tel: +86 10 8442 6681

Investec Bank Plc

Jeremy Ellis, George Price

Tel: +44 (0)20 7597 5970

Beaufort Securities Limited

Jon Belliss

Tel: +44 (0)20 7382 8300

Blytheweigh

Tim Blythe, Camilla Horsfall

Tel: +44 (0)20 7138 3224

Project Summary

The Pakrut gold project, of which CNG has 100 per cent ownership, is situated in Tajikistan approximately 120km northeast of the capital city Dushanbe. Pakrut is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and Western China, and which hosts a number of multi-million ounce gold deposits.

About Tajikistan

Tajikistan is a secular republic located in Central Asia. The country is a member of the Commonwealth of Independent States and the Shanghai Cooperation Organisation. Tajikistan hosts numerous operating precious metal mines as well as the largest aluminium smelter in Central Asia. CNG's management team has extensive experience in the mining industry in Tajikistan.

Short Name: China Nonferrous Gold
Category Code: MSCU
Sequence Number: 584330
Time of Receipt (offset from UTC): 20170601T120640+0100

Contacts

China Nonferrous Gold Limited

Contacts

China Nonferrous Gold Limited